Twenty years ago
it innovated a business
model that did not yet
exist, just as the global
cargo was seeing another big take-off. Today
Atlas Air flies for some
of the biggest names in
air transport.

EN

A

tlas Air Worldwide
may be one of the
biggest aviation firms
you’ve never heard of.
The US-based company’s first
flight took off in 1993, it went
public in 1995, and today has
about 1,800 employees worldwide
and a fleet of 48 Boeing aircraft.
Last year Atlas Air operated more
than 18,500 flights to 252 destinations in 94 countries, including
Luxembourg. In 2011 the company
posted total revenue of $1.4 billion,
and $784 million during the first
six months of 2012.
Company chief William J. Flynn
spoke with Flydoscope about
Atlas’ trajectory from the firm’s
headquarters near New York City.
Mr. Flynn, how do you explain
what Atlas does in simple terms?
I’ll tell you how I explained it to
my children. We went into a grocery store in New York in February and I picked up a pack of
fresh asparagus and asked,
“do you know how this got here?”
It’s a particularly Atlas example
in that we probably carry about
30 percent of the asparagus out of
Peru and into the US on a seasonal basis.
Our core business is what we call
“ACMI” which stands for aircraft,
crew, maintenance and insurance.
Our customers are airlines and
freight forwarders. We provide
them with aircraft – our fleet of
747-400s and now our new 7478Fs – crew, maintenance and
insurance. Then working with
our customers, we fly the routes
that they ask us to fly. As a result
we serve many of large freight
cargo operators you would know,
such as British Airways, Qantas,
Emirates, Etihad, Panalpina and
DHL Express.

28

/ 2012 — \4

So you’re not flying regular
routes but providing discreet
service for each customer ?
That’s an important distinction.
In our ACMI business, we don’t
operate scheduled service for
freight forwarders. That would be
a company like Cargolux.
No, we operate our aircraft on
behalf of our customers. Our customers believe that having dedicated freight capacity in dedicated
networks is an important part of
their overall business strategy and
business plan. Rather than fly
and own the aircraft themselves,
they choose to outsource that
operation to us.
Panalpina is somewhat an exception as a freight forwarder, because
typically freight forwarders buy

capacity off regularly scheduled
airlines. Panalpina believes that
there is a real competitive advantage in what they call their “owncontrolled network”. They believe
having the two 747-8Fs that we fly
for them creates a competitive
advantage and allows them to build
up unique and compelling value
propositions for their customers.
DHL has historically outsourced
parts of its network to underlying
operators. And as you may know,
DHL has a joint venture with Lufthansa that operates principally
their Asia-Europe operation.
Atlas Air principally operates
DHL’s trans-Pacific network,
between Asia and the United States,
as well as some of its operation
within North America.

About 75 percent of our flying
is ACMI. Then, we fly 15 percent
for the US military, both cargo
and troops. The remaining 10
percent is charter flights.
At your last quarterly earnings,
you reported that customer
demand and revenues were both
up in 2012. Do you see this trend
continuing despite gloomy
global economic forecasts?
The trade link that is currently the
softest is Asia-Europe because of
overall economic uncertainty. But
other trade links are growing, so
there is strength, if not growth, in
the Asia-US market, and in
north-south trade links to and
from Latin America, whether
that’s with Europe or the US.

Coverstory

“The air cargo
industry is key to
the global economy”
William J Flynn (Atlas Air Worldwide)

There’s huge growth into the
Middle East and Africa, particularly from Europe and Asia, and
strong economic development in
Africa. In Angola and other oil
rich countries in sub-Saharan
Africa, there’s good demand.
The kind of economic development
we see in Kenya and Ethiopia,
not only demand for finished
products southbound but the horticultural and agricultural exports
from the Horn [of Africa], continue
to grow.
I think the trends that started the
great expansion in air freight 20
years ago continue: the expanding
global economy, increased free
trade agreements, and the globalisation of manufacturing have
had an impact on our industry.
Also, because of the global economy, new wealth creation in
parts of the world is producing
millions, if not billions, of consumers who are looking for new
manufactured products. Finally,
in the developed areas of the world,
the agricultural products being
shipped north throughout the
year all drive good demand for
air freight.
Along with colleagues, William J.
Flynn (front left) and
Monika Ribar, CEO
of Panalpina (front
right) officially
inaugurate a new
747-8 freighter.
Entourés de collègues, William J.
Flynn (à gauche)
et Monika Ribar,
CEO de Panalpina
(à droite), ont officiellement inauguré
le nouvel avion
cargo 747-8.

What is your main business
in Luxembourg?
Luxembourg is an important part
of the network that we operate.
Certainly Panalpina is our principal
connection in Luxembourg.
We run about 350 flights per
year in and out of Luxembourg,
so that’s almost a daily flight.
That’s also doubled from where
we were two years ago. In 2009,
we were running about 175 flights
per year. The growth is largely
driven by Panalpina. We were operating one 747-400 for Panalpina two
years ago. Today we’re operating
two 747-8Fs because Panalpina has
expanded its own network.
Last year you changed your
order for 747-8Fs with Boeing.
What is the current status
of your 747-8F deliveries?
We have five today. Three are
operating for British Airways and
two are operating for Panalpina.
We have four more to come.
Do you agree with media reports
that the 747-8F’s performance
has not been up to scratch?
No, I wouldn’t agree with that

characterisation. The aircraft did
arrive late. They weren’t delivered
as originally expected. But what
the aircraft do deliver is an about
16 to 18 percent increased load
capacity, and a strong double
digit improvement in fuel burn
relative to the ’-400Fs. And the
aircraft are absolutely delivering
the fuel burn improvements the
additional cargo capacity.
Some of the concern is that the fuel
burn wasn’t as good as originally
contracted, so we reached a settlement with Boeing on that. But what
is delivered is still a substantial fuel
burn improvement that creates a
stair-step function improvement
over current technology.
What do you think people
don’t know about the air cargo
industry ?
The air cargo industry is key to
the global economy. If one were
to look at the developments in the
agricultural sector over the past
10 years in Kenya, for example,
several hundred thousand jobs
have been created.
Many of these were farming jobs
for people who, otherwise, were
doing subsistence farming.
Now they’ve got real support in
developing and producing produce
for the global market and earning
substantially higher levels of
income.
So there are clearly parts of the
world and new product flows that
aviation can point to and say that it
simply would not happen without
reliable air transport.
One could say the same about
Ethiopia, and for sure there are
parts of Latin America, where
there’s been just great economic
development, where air freight was
a necessary condition – not the only
condition that drove that development, but a necessary condition –
that drove that development.
So, in the end, air freight enables
global trade. .
p

Living the high life.
Waassertuerm, the industrial
water tower in Dudelange,
has undergone a total
makeover. It has metamor­
phosed into a spectacular
space dedicated to photo­
graphy – in which Edward
Steichen’s exhibition
The Bitter Years reigns.
en

42

S

ince Jean Back was a child,
the Waassertuerm, the water
tower soaring in the middle
of Dudelange’s industrial site, has
been part of the landscape. Lately,
however, his vision of it has
somewhat changed. “The renovation has transformed it into something incredible. The Waassertuerm
has become a sculpture!” Jean
Back is of course slightly biased.
As the director of the Centre
National de l’Audiovisuel (CNA)
he has played a big role in the
metamorphosis of the site, now
a new major space dedicated to
photography. “We started talking
about the project over 10 years
ago. I had had Edward Steichen’s
The Bitter Years collection restored
when Luxembourg was European
Capital of Culture in 1995 and
didn’t really know what to do with
it. The mayor of Dudelange at the
time, Mars Di Bartolomeo (current Minister of Health) asked me
if the buildings behind the CNA’s
offices couldn’t be used in some
way. The idea sounded ludicrous
at first. My head was saying no
but my gut was saying yes.
I listened to my gut.”
Not one but two vestiges of
Luxembourg’s mining past were
eventually included in the extension project: the industrial water
tower and its adjacent pumping
station (Pomhouse). The first,
with its stunning circular galleries, will become the permanent
home for Steichen’s exhibition,
whereas the Pomhouse will be
used for temporary exhibitions
and for “dialogues around photography, past and present.” Visitors
will also find other pleasant surprises on the site, such as the
panoramic elevator offering
a breathtaking view of the site
and the secret indoor garden.
It hasn’t been an easy ride for the
architects, Claudine Kaell and Jim
Clemes, but they certainly have
/ 2012 — \4

Photo : Dorothea Lange

Photo : Arthur Rothstein

the right to be satisfied with the
result. “One of the many challenges working on this project was
finding the right way to adapt the
historical and stylistic features
with the requirements of The
Bitter Years exhibition, they say.
We had to match the container
with the content, each with its own
story, without favouring one or the
other. In addition to the renovation of the industrial structures,
there was the architectural project.
By operating in a precise and
contemporary way, we have
managed to establish a real dialogue between the historical and
cultural legacy of the photographical collection, the site and the
distant landscape. Visitors will be
taken on a vibrant tour and have

Les œuvres d’Arthur
Rothstein et de
Dorothea Lange sont
parmi les nombreux
trésors de la célèbre
collection Steichen,
The Bitter Years.
Arthur Rothstein and
Dorothea Lange’s
works are amongst
the many treasures in
Steichen’s renowned
collection, The Bitter
Years.

a captivating and emotional
experience on several levels.”
The display of The Bitter Years
on a permanent basis is an event
in itself. It was the last exhibition
organised by Edward Steichen
as curator at the Museum of
Modern Art (MoMA) in New
York. It is also the second of
Edward’s exhibitions, after The
Family of Man, to end up in
Luxembourg, the native country
of the famous photographer,
painter and curator. Both collections were donated to Luxembourg at Steichen’s wish before
he died. To this day The Family
of Man remains the most popular
exhibition in the history of photography (seen by over 10 million
people in the 38 countries in

which it has travelled). It is on
permanent display in Clervaux
in the north of Luxembourg (the
site is currently being renovated
but will reopen in 2013).
The Bitter Years 1935-1941 offers
a compelling view of rural America during the Great Depression.
The exhibition was created using
a selection of images from the
Farm Security Administration
(FSA) and features the works
of some of the greatest photographers, including Walker Evans,
Dorothea Lange, Arthur Rothstein and Russell Lee. “It is a
remarkable exhibition, also in
the way it’s staged, Jean Back says.
Steichen proceeded like he was
editing a film. Steichen himself
considered the images ‘the most
remarkable human documents
ever rendered in pictures’.”
On a different level, but just as
captivating, is the first temporary
exhibition to occupy the Pomhouse.
It’s called Coexistence and was
commissioned by the CNA. The
British artist Stephen Gill was
invited to investigate the industrial wasteland around the water
tower and pumping station
in Dudelange for six weeks.
This has lead to a poetic work
in which water acts as a revealing
element where past and present
mix. “The photos are true masterpieces, says Jean Back. I also felt
it was important that the first
exhibition here had a direct link
to the location and the locals.”
This is ultimately where the
power of the Waassertuerm
and the Pomhouse lies: the place
and the exhibitions are interdependent. Dudelange, town
of immigrants and one of
Luxembourg’s most import
historic industrial centres, will
give a new meaning to The Bitter
Years, just as the exhibition will
instil the site with its intensity.
“It’s a flagship project for the
region, say architects Claudine
Kaell and Jim Clemes. It will
give the opportunity for people
to discover a site that was formerly
closed and remind them of the
industrial past of the south
of our country. The site and
surrounding industrial land will
acquire a new identity.” The new
space dedicated to photography
opens September 29..
www.cna.lu

President of the Association of the
Luxembourg Fund Industry ALFI,
Marc Saluzzi, takes stock of one the
Luxembourg financial centre’s leading
sectors, shortly before the group’s
major annual conference, which takes
place in Luxembourg on the 18th
and 19th of September 2012.

r. Saluzzi, macroeconomic
publications, be they Luxembour­
gish or international, are pessimis­
tic to say the least. What impact should one
expect this to have on Luxembourg’s
investment funds sector?
The current economic situation is not very
upbeat. Even countries that are reputed as
sound economically, such as China and
Germany, are beginning to experience
problems with slowing growth rates.
There is no positive news to be expected
over the coming months and quarters.
As far as the financial markets are concerned,
there is a different trend, which is more based
on anticipation. And quite surprisingly, these
markets have been rising at a time when the
raw economic data is not very optimistic.
As for Luxembourg’s asset management sector, it has maintained its market share, even
though there have not been any notable
rebound worldwide over the past few years.
Thus, with regard to assets under management, we managed to recover after the crisis
and returned to the record levels of 2008.
If you combine all this together, the conclusion one reaches is that ‘so far, so good!’, but
not much more than that. It is all still very delicate and it is very difficult to know where we
are heading. We can see that we are able
to take and absorb a certain number of hits,
thanks to our cross-border model. But the
question is to know up to what point and
until when we can hold out against a slew
of bad news. For the time being, we are
holding out rather well. That is rather
encouraging in the world in which we live.
/ 2012 — \4

juin 12

mars 12

déc 11

sept 11

juin 11

mars 11

déc 10

sept 10

juin 10

1 700

EN

3 300

1 800
mars 10

Français, lire page 52...

3 200

Source : Alfi

A new record amount of assets under
management in Luxembourg (2,225.6 billion
euros) was reached in April. Does this mean
that the investment funds constitute a kind
of safe haven for investors?
In Luxembourg, it is above all our cross-border
model and our diversification in terms of classes
of assets and geographical areas of investment
which increase our resistance to the crisis.
Thus, over a period of 10 years, the combined
market share of Luxembourg and Dublin, the
leading operators in the market for cross-border distribution of asset management services
in Europe, rose from 20 to 40%.
In general, the concept of regulated investment funds is showing strong resilience, and
in spite of a lack of growth over the past few
years, retains rather remarkable levels of assets
under management. But that’s not to say that
this is the sole savings or investment tool ‘of
choice’ of the entire planet.
Has the current sovereign debt crisis had
a direct impact on the funds sector?
There are of course very significant effects,
as shown by a very recent study published by
Lipper detailing the impacts of the crisis on
each class of assets. If you want a very concrete
and particularly striking example, the European Central Bank decided to cut its key rate
by a quarter point to 0.75% [ed.: which constitutes its lowest historical level] in early July.

As a result, a whole number of money
market funds and cash funds found themselves in trouble, unable to pay out a positive
yield to their shareholders.
In this context, what will be the profile of
this September conference?
First, we renewed the partnership with our
American partner Nicsa and also with our
Hong Kong counterpart HKIFA, as we did
in 2011. This partnership has been renewed
to demonstrate our intention to form closer
links with Asia. What was a new dimension
in 2011 will now be confirmed this year.
Moreover, the conference will focus particularly on this part of the world, through themes
relating to global distribution, all aspects of
which will be dealt with, be they technical or
regulatory. Through our conferences, but also
our road shows, we must once again go out
and meet our business partners, in order to
identify all the potential sources of blockage
or lack of understanding and clarify the situation so as to reassure the international community about the benefits that Ucits or AIFM
can contribute.
Finally, the conference will dedicate part of
its agenda to alternative funds, with professionals of the funds sector looking at the
ways in which the alternative management
sector can leverage the passport principle
introduced by the directive..

“Luxembourg
is the perfect
location”
Legal questions, tax issues, regulatory
regimes – all combine to make wealth
management a complex subject. Even
more so when it is international. Ernst &
Young’s Omid Mohebati and Sylvie Leick
look at what it is that gives Luxembourg
its competitive advantage in this sector.
Text: Marc Vandermeir | Photo: Christophe Olinger

ffective wealth management is all about
striking a balance between risk and profitability with each investment cycle, from
acquisition to transmission, via development,”
says immediately Omid Mohebati, Executive
Director of Tax at Ernst & Young Luxembourg. “The aim is to secure one’s future,
and that of one’s nearest and dearest, whether
that is for the short, medium or long term.
Of course, one’s objective may differ depending
on the term and size of the wealth.”
Nonetheless, legal questions, tax issues and
regulatory regimes make international wealth
management a complex subject. This is where
Luxembourg comes up trumps, with advantages that make it extremely attractive.
“The complexity is primarily down to the fact
that the manager must have expertise in a
number of different markets, such as insurance
products, real estate, securities and the like,”
explains Mohebati. “You need to talk to professionals working in each of the different areas,
especially financial advisors and legal and tax
consultants. But the main factor – and this is
vital – is that effective management requires
complete independence, to ensure you get
impartial advice when selecting products.”
Adding an international dimension accentuates
the complexity. Most of the clients of private
banks based in the Grand Duchy are non-resident. “This raises the complexity stakes even
higher, since this non-resident clientele’s portfolio
consists of extremely varied assets, located in
many different countries and therefore subject

/ 2012 — \4

to many different jurisdictions. Even the family
itself may be spread over a number of countries.”
But, wealth management also demands
a specific environment with access to a special
toolkit. “Luxembourg is perfectly adapted to this
role,” emphasises Omid Mohebati. “From the
point of view of the environment, Luxembourg
enjoys remarkable political, economic and social
stability. It is a market leader when it comes
to investment funds. The first fund was created
here in 1959, and all that history implies expertise and an accumulated savoir-faire.”
Sylvie Leick, Associate Director in the tax
department at Ernst & Young Luxembourg,
also believes strongly that the environment
could not be better suited. “Our multilingualism, cosmopolitan outlook, quality of life and
feeling of security are also beneficial factors,
not only in providing wealth management
for an international clientele, but also, as borne
out by the facts, in welcoming this clientele to
become residents here. The fact that Luxembourg is a Member State of the European
Union, enjoying freedom of movement and,
with its very central situation, accessibility to all
the other capital cities in the region, is also
a considerable advantage. In addition, Luxembourg’s administrative sector has all the required
expertise in this domain, and is thus very
approachable. The government is also very proactive, unlike in many other countries.”
The range of investments on offer is also able
to respond to all needs and expectations, from
unregulated investment vehicles to regulated

products. “Well-suited for the former are company structures such as the Soparfi (société
de participations financières – a fully taxable
company) or the SPF (société de gestion de
patrimoine familial – reserved for individuals
acting in the scope of the management of their
wealth or for investment entities taking the
form of a foundation or trust). The SPF
may not engage in any commercial activity,”
explains Mohebati. “The objective is to
acquire, manage and realise any financial asset
in a manner that would be permitted for any
individual acting in the management of his
private capital, tax neutrally. The only levy
is a subscription tax of 0.25%.”
These are followed by regulated vehicles such
as SIFs (Specialised Investment Funds), which
are ideal for wealth management as they can
invest in just about anything.
In addition to the local expertise and environment, another competitive advantage enjoyed
by Luxembourg is that “we are not actually
off-shore. We are European and very proactive,” notes Omid Mohebati. “Of course, there
are competing financial locations, but they
have this negative aspect of being off-shore.”
“The European aspect is very important,” continues Sylvie Leick. “But even if the clientele
is turning towards new markets, our core business remains European, with a strong affinity
to this European outlook and the expertise of
Luxembourg-based advisors. And that is in
comparison with Asian locations, for example,
as well as with Switzerland.” .

Part 1 / B2B

International wealth management

“Luxembourg
is the perfect
location”
Legal questions, tax issues, regulatory
regimes – all combine to make wealth
management a complex subject. Even
more so when it is international. Ernst &
Young’s Omid Mohebati and Sylvie Leick
look at what it is that gives Luxembourg
its competitive advantage in this sector.
Text: Marc Vandermeir | Photo: Christophe Olinger

ffective wealth management is all about
striking a balance between risk and profitability with each investment cycle, from
acquisition to transmission, via development,”
says immediately Omid Mohebati, Executive
Director of Tax at Ernst & Young Luxembourg. “The aim is to secure one’s future,
and that of one’s nearest and dearest, whether
that is for the short, medium or long term.
Of course, one’s objective may differ depending
on the term and size of the wealth.”
Nonetheless, legal questions, tax issues and
regulatory regimes make international wealth
management a complex subject. This is where
Luxembourg comes up trumps, with advantages that make it extremely attractive.
“The complexity is primarily down to the fact
that the manager must have expertise in a
number of different markets, such as insurance
products, real estate, securities and the like,”
explains Mohebati. “You need to talk to professionals working in each of the different areas,
especially financial advisors and legal and tax
consultants. But the main factor – and this is
vital – is that effective management requires
complete independence, to ensure you get
impartial advice when selecting products.”
Adding an international dimension accentuates
the complexity. Most of the clients of private
banks based in the Grand Duchy are non-resident. “This raises the complexity stakes even
higher, since this non-resident clientele’s portfolio
consists of extremely varied assets, located in
many different countries and therefore subject

/ 2012 — \4

to many different jurisdictions. Even the family
itself may be spread over a number of countries.”
But, wealth management also demands
a specific environment with access to a special
toolkit. “Luxembourg is perfectly adapted to this
role,” emphasises Omid Mohebati. “From the
point of view of the environment, Luxembourg
enjoys remarkable political, economic and social
stability. It is a market leader when it comes
to investment funds. The first fund was created
here in 1959, and all that history implies expertise and an accumulated savoir-faire.”
Sylvie Leick, Associate Director in the tax
department at Ernst & Young Luxembourg,
also believes strongly that the environment
could not be better suited. “Our multilingualism, cosmopolitan outlook, quality of life and
feeling of security are also beneficial factors,
not only in providing wealth management
for an international clientele, but also, as borne
out by the facts, in welcoming this clientele to
become residents here. The fact that Luxembourg is a Member State of the European
Union, enjoying freedom of movement and,
with its very central situation, accessibility to all
the other capital cities in the region, is also
a considerable advantage. In addition, Luxembourg’s administrative sector has all the required
expertise in this domain, and is thus very
approachable. The government is also very proactive, unlike in many other countries.”
The range of investments on offer is also able
to respond to all needs and expectations, from
unregulated investment vehicles to regulated

products. “Well-suited for the former are company structures such as the Soparfi (société
de participations financières – a fully taxable
company) or the SPF (société de gestion de
patrimoine familial – reserved for individuals
acting in the scope of the management of their
wealth or for investment entities taking the
form of a foundation or trust). The SPF
may not engage in any commercial activity,”
explains Mohebati. “The objective is to
acquire, manage and realise any financial asset
in a manner that would be permitted for any
individual acting in the management of his
private capital, tax neutrally. The only levy
is a subscription tax of 0.25%.”
These are followed by regulated vehicles such
as SIFs (Specialised Investment Funds), which
are ideal for wealth management as they can
invest in just about anything.
In addition to the local expertise and environment, another competitive advantage enjoyed
by Luxembourg is that “we are not actually
off-shore. We are European and very proactive,” notes Omid Mohebati. “Of course, there
are competing financial locations, but they
have this negative aspect of being off-shore.”
“The European aspect is very important,” continues Sylvie Leick. “But even if the clientele
is turning towards new markets, our core business remains European, with a strong affinity
to this European outlook and the expertise of
Luxembourg-based advisors. And that is in
comparison with Asian locations, for example,
as well as with Switzerland.” .

A multilingual
environment that
is unique in this
world
An impressive number of languages
are spoken and understood in Luxembourg.
However, to succeed in the business
arena, proficiency in English and French
constitutes a key advantage.
Text: Sébastien Lambotte

Français, lire page 60...

“Anyone who speaks
several languages will
always have an advantage
over others”
Artur Sosna (Berlitz)

EN

W

hen it comes to being multilingual,
Luxembourg is doubtless unique
in the world. Despite its small size,
it has three official languages: Luxembourgish,
French and German. Furthermore, many
other languages are spoken on a day-to-day
basis in the country’s various cultural, economic
and social circles. “43% of the resident population do not have Luxembourgish nationality.
In addition to that, around 160,000 workers
commute across the border to Luxembourg
every day” says Artur Sosna, the head of Berlitz
Luxembourg, a language training and soft skills
institute. “During my career, I have visited more
than 60 countries, and I have never seen a case
like Luxembourg, where so many languages are
spoken concurrently.”

Languages more important
than technical know-how
The country must use this multilingual environment to its advantage to spur on its economic
development and must carefully preserve it.
“This isn’t something you can simply institute,
like a legal or taxation reform which enables
a country to position itself relative to another.
It takes two or three generations to create such
a multilingual environment. In Luxembourg,
because the country is surrounded by a number
of different cultures and has experienced
several waves of immigration, from Portugal
and Italy for instance, it has developed naturally”
says Artur Sosna. We must therefore protect
it and foster it. Companies will benefit in
fostering a multilingual environment and
capitalising on cultural and linguistic diversity.
“Obviously, the more languages one speaks, the
more opportunities one has to advance in one’s

62

/ 2012 — \4

career. Whoever speaks two, three or four
languages, will inevitably have a far more interesting profile for a recruiter” says Artur Sosna.
“This is because it is always more difficult
to find a multilingual person than one with
good technical know-how, since technical
aspects are easier to teach than languages,
and whoever speaks several languages will always
have an advantage over others, even if he
is not the best in his trade.” That said, a number
of major trends can now be witnessed
in Luxembourg. To flourish optimally in the
employment market, in the business world,
one must above all be able to speak two
languages: English and French. “A person
who only speaks English can work without
experiencing any problems in many companies
in the financial sector in Luxembourg”, says
the head of Berlitz Luxembourg. German,
it would seem, only comes in third position.
“Among the applications for training that we
receive, one third involve English, another third
French with German, Luxembourgish and all
the other languages forming the last third”
says the head of Berlitz in Luxembourg. “This
predominance of English is due to the fact
that it is the world’s lingua franca. In general,
German speakers understand and can express
themselves in English better than French speakers.
However, a large proportion of Luxembourg’s
workforce is French-speaking, which explains
the requirement to know French, too.”

Of course, there are sometimes specific
requirements. And the requirements in terms
of language use can vary between from one
sector to another.

One person, six languages
“Recently, I came across an ad. A luxury
store in the city centre was recruiting staff.
The advertisement for a receptionist demanded
proficiency in English, German and French,
and went on to state that knowledge of Russian,
Chinese and Luxembourgish would constitute
major assets. I found this rather incredible”,
says Artur Sosna. The head of Berlitz,
surprised that one might ask for a single
person to be conversant with six languages,
visited this same boutique shortly afterwards.
“They had found a person who spoke five
of the six languages required. If I remember
correctly, she could speak them all except
Russian” says he. So what about Luxembourgish
in all of this? It would appear that it is not
a very useful language in the financial sector.
The national language, however, constitutes
a major strength for anyone who wants
to work in business or with the State.
“Luxembourgish is above all a means of
integrating for those who have come from
abroad and want to settle in the Grand Duchy;
knowledge of this language is vital to secure
dual nationality” says the head of Berlitz..

Part 1 / B2B

R&D

Science 2.0
While Luxembourg’s research
and development landscape
is relatively young compared
with European neighbours,
the government is trying to push
the country ahead with a revamp
of its main players.
Text: Aaron Grunwald | Photo: Luc Deflorenne (archives)

any countries around the world are
currently cutting back R&D budgets
in light of the economic climate, but
public research funding in the Grand Duchy has
remained steady. In fact, state spending is forecast to be about 0.6% of GDP, or about 280 million euro in 2012 and 296 million euro in 2013,
according to European Commission figures.
Most of that budget is focused along two
main axis: the University of Luxembourg,
which opened in 2003; and the network
of public research centres (CRPs), which
launched in 1987. The university focuses on
basic research and academic training, while
the CRPs focus on applied research that can
lead to economic innovation.
Indeed, the CRP system is marking its
25th anniversary with big changes in store:
the largest and third largest centres are merging; and the second largest plans to upgrade
its portfolio of joint research projects.
The CRP Gabriel Lippmann – with about
250 staff and an annual budget of more than
26 million euro, and which is best known for
its work in materials analysis, environmental
science and information technology – will
combine with the CRP Henri Tudor – home
to about 500 employees and an annual budget
of more than 40 million euro, and which is
equally known for its work in the same three
disciplines, albeit with differing specialisations.
With many overlapping fields of expertise,
“synergy is one of the motivations for this fusion.
The objective is to reach critical mass,” says
Jean Pol Michel, business development
director at the CRP Henri Tudor.
The centres hope the bill mandating the merger
will pass Luxembourg’s parliament by next year.
In addition, the CRPs – along with the University of Luxembourg’s research facilities – will
/ 2012 — \4

relocate to a new super-campus in the south
of the country. The 565 million “Cité des
Sciences” in Esch-Belval will also host an incubator for innovative start-ups, and still have
space for other private and not-for-profit
organisations. The university has already
begun to move into “Science City” – with the
opening of new biomedical labs last autumn
– and new facilities will continue to open at
a steady clip between 2014 and 2019.

Healthcare projects
At the same time, the second largest centre
CRP-Santé – which has about 300 employees,
an annual budget of more than 30 million euro,
and works exclusively in the health and biomedical spheres – has vowed to step up its partnerships with other Luxembourg institutions.
Among CRP-Santé’s other work, “we have
built up competencies in clinical investigative
research, which has really been a huge success,”
its chief, Dr. Jean-Claude Schmit, reports.
“This research brings basic knowledge which
we develop in laboratories to clinical application; you could say to the patient’s bedside.”
Schmit explains that “you need this kind
of translational research if you really want
to implement personalised medicine,” which
was named as a national economic development goal in 2008.
These days “we already collaborate a lot with,
for example, the University of Luxembourg and

the IBBL,” the Grand Duchy’s biobank.
“The aim is not to repeat things, not to acquire
expensive equipment twice.” Beyond that, for
example, “for the IBBL, CRP-Santé provides
data collection services and obtaining informed
consent of patients. The biobank provides us
with services storing and analysing samples.
So the collaboration can be really close.”
Schmit also notes that the national health lab
was recently spun out of the health ministry
and is now a stand-alone public body. The
development has spurred CRP-Santé and its
counterparts to “reflect on how to reorganise
the collaboration between the research organisations that work in field of healthcare.” He
explains that: “With at least four players we
have to see how we will work together, because
we cover different aspects of the same field.”
Schmit says some changes have been proposed, but discussions are ongoing.
While some in Luxembourg have proposed
that CRP-Santé and CEPS – the fourth largest
centre, which conducts research in the economic, political and social sciences – should
also merge with the others to create one large
CRP, Schmit says that “in the short term” there
have been no discussions with his centre about
such a move, as there is little research overlap
between them. “I don’t know what will happen
in 10 years, [but currently] I see more
of a very close collaboration between the four
organisations that work together in the field
of healthcare.” .

La montre Arceau Le Temps suspendu
présente une nouvelle complication
avec un ingénieux jeu de cames, de
pignons et de segments. Son acquéreur
peut ainsi à sa guise arrêter la course
du temps et revenir à l’heure
exacte instantanément.
Arceau Le Temps suspendu is a watch
which presents a new complication
with an ingenious interaction between
cams, gears and segments. Its buyers
may also have a free reign to stop
time and to return instantaneously
to one precise hour.
Hermès

Firenze Dual Time Drass est équipée
de deux mouvements automatiques
qui permettent de lire simultanément
l’heure dans deux fuseaux horaires :
l’heure locale à 6h, la seconde à 12h.
Firenze Dual Time Drass has two
automatic movements which allow
the time to be read simultaneously
in two different time zones: local time
at 6am, the other at noon.
Anonimo

Like other leading companies in the
aeronautic sector that have been hit by
the crisis, LuxairGroup reports very mixed
results for 2011 and is not expecting its
2012 results to be any more encouraging.
Notwithstanding a positive bottom line in 2011
(€3.6 million), the operating income of
LuxairGroup and its business lines has suffered
all kinds of upheavals, with the Airline business
being the most affected. Although the occupancy
rate remained stable and the number of
passengers even increased, 32% of passengers
opted for the Primo family ticket, while sales of
business and ecoflex tickets have fallen steadily.
These factors, combined with the surge in oil
prices and increasingly onerous competition,
make passenger yield very hard to control.
The tour operator branch, on the other hand,
has managed to avoid a massive drop in profits
despite the recent political upheavals in North
Africa. LuxairCARGO closed the year with a slight
profit due to the constant optimisation of
production and LuxairServices did well, profiting
from an increase in passenger numbers at
Luxembourg Airport. As from October, the group’s
Executive Committee will be working on a strategic
plan adapted to the new market order and
should make its intentions known some time
in December.

There are currently three flights a day from Luxembourg to Milan Malpensa Airport.
L’aéroport de Milan Malpensa est actuellement desservi trois fois par jour au départ de Luxembourg.

A third daily Luxembourg-Milan rotation
starting 17 September has been set up to
improve the service to Northern Italy.
The additional midday flight to Milan provides new
options for people wishing to take advantage of the
entire network, departing from Milan and gives business passengers greater flexibility when planning
their travel. Online services and the fast lane for business class passengers*, speeding up security checks
(now also in service at Milan) will also help save
time.
The service will also be useful for people planning
a visit to Milan - see recommendations in the LuxairTours Metropolis brochure.
Rewards for loyal passengers
To reward passenger loyalty on this route, Luxair
is currently offering a return ticket to passengers
making four round trip flights by 31 December 2012.
Passengers making three round trip flights will
receive a €25 voucher to use in BUY Bye Luxembourg
stores. The five customers who have made the highest number of flights on this route will receive a free
Metropolis package for two. For information and
registration, visit www.luxair.lu.
*valid at Milan airport for business class travellers - Senator
and HON circle members, upon presentation of a boarding
card with a Luxair flight number.

EGYPT: A timetested choice
L’Egypte, valeur sûre
Year-round sunshine, beaches that go on forever, sensational marine life,
relics from an extraordinary past - Egypt is the ideal destination for holidaymakers keen to escape the winter gloom. Every week, Luxair operates
flights from Luxembourg to Hurghada, Marsa Alam and Sharm el Sheikh.
Avec un soleil qui brille inlassablement tout au long de l’année, des plages
à perte de vue, des fonds marins sensationnels et les vestiges d’un passé
extraordinaire, l’Egypte reste une valeur sûre pour fuir la grisaille hivernale.
Chaque semaine, Luxair propose des vols à destination d’Hurghada,
de Marsa Alam et de Charm el-Cheikh au départ de Luxembourg.
Land of legends and cradle of fascinating civilisations, not only does Egypt offer a wealth of amazing
discoveries, it is also the perfect seaside holiday
destination. Hurghada and Marsa Alam on the
shores of the Red Sea and Sharm el-Sheikh on
the southern tip of the Sinai Peninsula have
become favourite locations for swimming, diving
and all kinds of aquatic activities including sailing,
water skiing, catamaraning and parasailing.
Like Marsa Alam, Sharm el-Sheikh, once a simple
fishing village is famous for its marine life. The Ras
Mohammed National Marine Park, for example,
boasts coral reefs, underwater caves and many
species which cannot fail to captivate divers.

Steeped in history
Egypt is best known for its exceptional historical
heritage and the traces left behind by successive
civilisations. What would a holiday in Egypt be
without a stopover in Luxor or a visit to the
Temples of Karnak? A detour via Cairo and
the Giza Plateau is a must to see for yourself
the famous Cheops Pyramid and the Sphinx.
Immerse yourself in Egyptian culture and its traditions
by mingling with the locals, soaking up the atmosphere of the ancient bazaars, with their non-stop
hubbub and Eastern music, or by sampling culinary
specialities in more traditional restaurants.

Luxair

The seaside resort of Sharm el-Sheikh.
La station balnéaire de Charm el-Cheikh.

The marine life of the Red Sea is particularly popular with divers.
Les fonds marins de la Mer Rouge sont particulièrement appréciés
des plongeurs.

The Giza plateau and its famous pyramids.
Le plateau de Gizeh et ses pyramides.

What exactly is in-flight entertainment?
(Yves) All the communication processes designed
to entertain passengers during a flight. Luxair
operates medium haul flights for its tour operator
division using Boeing 737s. As these flights last
two to six hours, passengers need a range of interesting entertainment as well as attentive service
and a comfortable environment. With this in mind,
we recently launched a refurbishment project for
the cabins of our Boeing fleet. Selecting and developing the audio-visual system was a key part
of this project.
Could you tell us more about this system?
(Laurent) We chose the dPAVES Gen 2 system
from Rockwell Collins, a specialist in the field.
The system is based on a high definition multimedia server linked to a tactile control screen that
interfaces with the cabin or maintenance crew.
Eight styles of music in stereo can be streamed
automatically and simultaneously, and films and
videos played on our passengers’ screens, linked
to the corresponding soundtrack in the earphones
connected to their seats. As the server is also
directly connected to the main navigation system,
our passengers can also enjoy an «Airshow».
This is a series of 2D or 3D satellite images and
information about the flight - the aircraft’s location, outside temperature, remaining flight time,
etc. The system never interferes with the aircraft’s
vital systems, it simply uses the information
they provide.
Is being a launch customer an advantage?
(Laurent) Definitely, it’s a huge advantage. It
means that our airline gets very special attention
from our supplier and becomes a «reference»
for other operators. I should point out that this
wasn’t our first experience with Rockwell Collins.
As a result of our partnership, which has always
been based on trust and mutual exchange, they
opened the doors of their design and test laboratories to us and gave us access to their engineers.
Besides our requirements and constraints, they
also took the specifics of our airline into account
in order to develop an optimal system. We were
therefore totally familiar with the system’s operation before it was rolled out and now we can make
full and appropriate use of it. Although the system
is operational on the whole of our Boeing fleet,
Rockwell Collins still regularly assists us with
upgrades, in line with our suggestions.
What about the installation of this system
and how long does it take?
(Laurent) Dismantling the old system and installing
the new one took about 350 hours of work per
aircraft, which is why we had to take advantage
of the recent heavy maintenance inspections, known
as C-Checks. A C-Check requires the aircraft
to be grounded for anything between 10 days and
a month depending on its age. Maintenance company Sabena Technics Dinard was commissioned
to carry out these particular C-Checks; their technicians, assisted by a specialist from Rockwell Collins
and a Luxair Technics engineer, installed the new system.

It took about 350 hours to remove the old system and
replace it with the new one. Installation had to be carried
out alongside the recent heavy maintenance inspections,
known as C-Checks, which generally require aircraft
to be grounded approximately 10 days.
350 heures ont été nécessaires pour démonter l’ancien
dispositif et installer le nouveau système audio-visuel.
Sa mise en place a dû être effectuée parallèlement aux
dernières visites de maintenance lourde dites «C-Checks»
qui nécessitent généralement une immobilisation de
l’avion pendant une dizaine de jours.

Luxair
portrait
Were there big changes in relation
to the old system?
(Laurent) Technological advances benefit the
passengers first and foremost, providing better
picture quality, bigger screens, more flexible and
varied programming, not forgetting the Airshow
system which already seems to be very popular.
The storage capacity is also much larger than
before - 160 gigabyte - but as the files are now
centralised on the same server, the onboard
hardware is significantly smaller and lighter,
with a corresponding reduction in aircraft fuel
and energy consumption.
(Yves) Add to this the system’s exceptional flexibility, which allows us to adjust the programming
depending on the destination and number
of hours’ flight time. We have just developed
a customised programme for each destination.

How is programming managed?
(Yves) We both attended training at Rockwell
Collins’ offices in the United States and are now
qualified to get directly involved, both technically
and in terms of programming. Laurent takes care
of the technical side of things, assisted by his
colleague Martial Romanjuk from the avionics
engineering department and by the avionics maintenance team. I am in charge of the content and
adjustment of the programmes, helped by my colleague Luis Pereira. The cabin crew are responsible
for on-board operations and the daily updates.
Their active participation is a vital link in the chain.
What about the current content on offer?
(Yves) We’re talking about a single programme
shown on overhead video, so we had to consider
the interests of all the passengers, big and small.
We therefore include reports on the target destination, video clips, cartoons, a comedy slot, feature
films for longer flights and a few promotional ads,
all interspersed with Airshow sequences. We
recently began broadcasting television news in
collaboration with RTL. It is only a small extra,
but we’re the only medium haul airline to offer
this. It was quite simple to implement as such,
but a fair amount of interaction was necessary
between departments and also with RTL.
(Laurent) I should add that right from the beginning of the project, we urged all the departments
involved, both near and far, to contribute to the
development of the system. This constructive and
inclusive approach clearly worked in our favour
as far as this new operation was concerned.

Register: become a member free
of charge to enjoy multiple benefits.
Collect Miles: by booking rooms
at hotels, when travel­ling by plane, by
renting cars, by shopping at the airport, etc.
Exchange Miles: for a stay in a hotel,
a flight ticket, a gift, etc.

To obtain your card, visit www.miles-andmore.com and fill in the application form.
Once you are a member, simply quote the
number of your Miles & More card when
making a booking or present it during
check-in to collect miles.

Your status will rise depending on the
number of miles collected** and your
benefits will increase accor­ding to your
status. They include check-in at business
class counters, higher priority on standby
lists, a higher baggage allowance and
a guaranteed seat up to 24 hours before
your flight.

Make your dreams
come true and
benefit from
attractive
rewards!
There is hardly anything that is not available
as a Miles & More reward: hotel accommo­
dations, journeys, lifestyle products, consumer electronics, all manner of luxury
products and services for travelling, interesting events and promotions - and you
can even donate to charities. See for yourself at www.worldshop.eu.
There is a whole range of attractive Miles
& More rewards. You may for instance
redeem your miles for flight awards or
for an upgrade. Discover all the details
on www.miles-and-more.com.

Frequent
Flyer
Programme
As a fully integrated partner of the Miles & More
frequent flyer programme, Luxair Luxembourg Airlines
enables you to collect Miles on all its regular flights*.
Furthermore, you can also collect Miles on Lufthansa
flights as well as at all other Miles & More partners.

In order to enhance and strengthen the
Miles & More service, it is now possible
to collect more Miles on European crossboarder flights operated by Luxair
Luxembourg Airlines (see details below).
Senator Member

BANKING HOTSPOT AND
INVESTMENT FUND INDUSTRY
Ranked 8th in the world, the Luxem­
bourg financial centre is not only the
largest investment fund and captive
reinsurance centre in Europe but also
the largest private banking centre in
the Eurozone. Its success is based on
the country’s social and political stability,
on its modern legal and regulatory
framework. The Luxembourg financial
centre is characterised by a strong
culture of investor protection and rigorous
anti money­laundering policies, under­
pinned by a competent and proactive
supervisory authority. A multilingual,
multicultural workforce enables the
financial industry to meet the require­
ments of their international clientele.
The financial sector is one of the
main employers in Luxembourg and
contributes to over 30% of its GDP.

A STEEL GIANT AND
SATELLITE PROVIDER
The steel industry has constituted since
1850 the backbone of the Luxembour­
gish economy. Today, ArcelorMittal
(formerly ARBED), the biggest steel
company in the world, is still the biggest
private employer in the country with
5,870 employees. Since the 1980s,
the banking sector has come to play
a predominant role in the economy, but
other sectors have also expanded, such
as the telecommunications sector with
the RTL Group and the recent installa­
tion of the European headquarters of
Amazon and eBay in Luxembourg.
Satellite operator SES, whose global
satellite fleet reaches 99% of the world
population, is yet another star on the
Luxembourgish business heaven.

IN THE HEART OF EUROPE
An independent country since 1839,
the Grand Duchy of Luxembourg is a
constitutional monarchy with a parlia­
mentary democracy. The official head
of state is HRH Grand Duke Henri.
Jean­Claude Juncker’s Christian Social
People’s Party (CSV) has been the
senior coalition partner in successive
governments since 1979. After 2009
elections, Luxembourg is one of the
six founding members of the European
Coal and Steel Community in 1951,
the precursor to the EU. The Luxem­
bourgish capital is home to a number
of European institutions: the European
Court of Justice, the European Court of
Auditors, Eurostat, the Office for Official
Publications of the European Communi­
ties, the European Investment Bank,
and buildings for the European Com­
mission and the European Parliament.

A HUB OF CULTURE
As the Capital of the country, Luxem­
bourg City offers a rich cultural life.
The Museum of Modern Art (Mudam),
designed by Sino­American architect
I.M. Pei, the Philharmonie concert hall
and the Grand Théâtre de la Ville de
Luxembourg have turned the Luxem­
bourgish capital into one of the main
cultural hotspots of the region. Luxem­
bourg City can also look back at a rich
history of more than a thousand years
that can be explored when visiting the
underground tunnels “Casemates” or
going for a walk along the fortress on
the Wenzel path. However, Luxembourg
as a country has more to offer. The
south of the country, also known as
“Minett”, gives you the opportunity to
dig into Luxembourg’s industrial past
at the site of Esch­Belval, where the
Rockhal is the venue for the biggest
names in Rock and Pop. The hilly
Ardennes region in the north is home
to a number of beautiful castles like
Vianden or Clervaux, which houses
Edward Steichen’s The Family of Man
photo exhibition. The Moselle valley,
which borders Germany, invites you
to taste some good Luxembourgish
white wines.